In 2006, a friend of mine, working in Saudi Arabia visited us in Bangalore – and invested in a 3 bed room, 2000 sq ft flat in Prestige Shantiniketan in Whitefield (http://www.prestigeconstructions.com/shantiniketan-residential/overview.html).
The logic then was that the location is good – IT companies are all around and this property was a large project – 3000 flats, a five star hotel, a mall, a 2 million sq ft office complex and a convention centre– all within the same compound. Bangalore did not have anything like it then.
That time, the flat was costing appx. Rs 50 lacs – he invested Rs 10 lacs from his side and took a loan for the remaining amount from HSBC. His decision was impromptu – he did not come to Bangalore looking for a flat. But he nevertheless took the call and invested. Did he have Rs 10 lacs? No – how he managed it is another story :-)
Over the next few years, quite a few things happened globally that I do not want to dwell upon. There was also a serious accident in the project site where one of the towers being built just collapsed and that delayed the project by about 2 years – finally in 2010-11 the project was completed.
Now it is a great place to live and work and is a well known address in Whitefield for mid level and senior professionals.
My friend is now looking at selling the property. The flat will go at an estimated Rs. 140 lacs now. Of this Rs. 140 lacs, he will need to repay his 40 lac loan. He will be still left with Rs 100 lacs. The pre emi he has paid over the past 7 years is about 25 lacs.
So his investment of 10 lacs and Rs 25 Lac emi payments over 7 years has given him Rs 100 lacs now - he has tripled his Rs 35 lacs to Rs 100 lacs.
Do you want to do a similar act now? Write to me and I will give you a few similar ideas.